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Gaurav Raghuvanshi

Ahmedabad , Nov. 25

ONGC Ltd, which needs to get eight independent directors on its board to comply with Clause 49 of the Listing Agreement, says it is the Government's problem to fill the vacancies.

"We have always stood for corporate governance. But finding independent directors to comply with Clause 49 is something that the Government has to do," the ONGC Chairman and Managing Director, Mr Subir Raha, said here on Thursday.

With the Securities and Exchange Board of India threatening penalties on companies not meeting the December 31 deadline for Clause 49 compliance, ONGC needs eight independent directors on its board.

Interestingly, the company's present board strength is 14, out of which three are independent. If it was to appoint the eight new independent directors, its board strength will rise to 22, while its Articles of Association allows for only 21 directors.

ONGC has written to the Government pointing out the issue. The solution, company sources say, would be to either withdraw one of the three Government nominees or ask Indian Oil Corporation to pull out its sole representative on the board.

Mr Raha said his only objection was to the appointment of Mr V.K. Sibal, who being the Director General of Hydrocarbons (DGH), was the regulator for the sector.

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